Managed Futures Nov Performance (cue the Happy Dance!)

If we imagined what a Managed Futures happy dance might look like, it would go a little something like this.

Happy Dance(Image Courtesy: businesswritingthatcountsblog)

Alright, the cat is out of the bag. We tried to keep it under wraps… We tried not to be too excited about it… but with November’s performance the average YTD performance of the four managed futures indices we track are now in the double digits {past performance is not necessarily indicative of future results}.

So what happened? If you Google it, chances are you’re only going to be reading about what happened the last day of the month. On Black Friday, the day after thanksgiving when you’re either shopping or spending time with family, the crude market imploded, dropping 10% in one day.  We were pleased to see a lot of the managed futures strategies we track short crude last week. But it wasn’t just about Crude or Black Friday.  We’re even more pleased that many of these same strategies have been short crude since long before that, as crude has dropped more than 30% since July. We’re even more pleased these strategies have been short metals, and long the U.S Dollar for more than just one volatile day {past performance is not necessarily indicative of future results}.

For those who stuck with Managed Futures through the generational drawdown, congratulations.  For those who didn’t… well, the emotional investment cycle never seems to miss getting in at the top and out at the bottom. When Managed Futures was struggling, all the people who got in because of managed futures’ 2008-2009 performance got out {we assume it was those people}, and just when they did, performance kicked back in, like it was waiting for them to leave. According the BarclayHedge’s Asset flow numbers, CTA’s saw the largest 10 month outflow since they started keeping track in 2000.

“Commodity trading advisors (CTAs) took in a six-month high of $932 million (0.3% of assets) in October, reversing course after redeeming $2.8 billion (0.8% of assets) in September. CTAs have shed $10.4 billion (3.1% of assets) this year, the largest January–October outflow in our records dating to January 2000 and halting 13 years of consecutive inflows in the January–October span.”

Here’s a look at Managed Futures performance thus far in 2014. Another repeat month would be a great holiday present for Managed Futures.

Managed-Futures-monthly-look

Disclaimer: Past performance is not necessarily indicative of future results)
(Note: Barclayhedge reporting 61.84% of funds)

P.S. – Attain’s Family of Alternative Funds kept track with the benchmarks above, and then some in November. To get monthly performance and research updates on the family of funds, sign up here.

“The Managed Futures Blog is a compilation of thoughts, research, attempts at humor, and more from the team at Attain Capital Management (“Attain”). Attain pairs high net worth individuals, RIA’s, and institutional investors with alternative investments in commodities, managed futures, and global macro strategies through privately offered funds and managed accounts. Click here to sign up for their insight and analysis.”